Segregation and Limitation of Functions of Members, Brokers and Dealers.
Section 34
SEC. 34. Segregation and Limitation of Functions of Members, Brokers and Dealers. - 34.1. It shall be unlawful for any member-broker of an Exchange to effect any transaction on such Exchange for its own account, the account of an associated person, or an account with respect to which it or an associated person thereof exercises investment discretion: Provided, however, That this Section shall not make unlawful- Any transaction by a member-broker acting in the capacity of a market maker; Any transaction reasonably necessary to carry on an odd-lot transactions; Any transaction to offset a transaction made in error; and Any other transaction of a similar nature as may be defined by the Commission. 34.2 In all instances where the member-broker effects a transaction on an Exchange for its own account or the account of an associated person or an account with respect to which it exercises investment discretion, it shall disclose to such customer at or before the completion of the transaction it is acting for its own account: Provided, further, That this fact shall be reflected in the order ticket and the confirmation slip. 34.3 Any member-broker who violates the provisions of this Section shall be subject to the administrative sanctions provided in Section 54 of this Code.